There seems to be no end to advertising for cheap car insurance. And for a lot of drivers, a low-cost policy is the best fit.
But when you are looking to insure your home, does buying the cheapest policy out there still make sense? We certainly know the value of, well, value; but we also know how pricey it can be to pick up the pieces when hit by an uncovered disaster – not just to your wallet, but to your peace of mind.
As premiums go up, there has been an influx of cut-rate home insurance companies offering tempting premium rates. But there’s no such thing as a free lunch, as they say, and without looking your policy over carefully you could end up paying a lot more in the long run. While you consider your policy options, here are a few things to consider.
Filling In Coverage Gaps
With homeowner’s insurance there are three decisions you can make that will more than pay for themselves if anything is to befall your home.
- Replacement Cost Vs. Assessed Value – In most cases, you want to insure your home for the price it will take to actually rebuild it in the current market. Recent rising construction costs are no secret, which means replacement cost might be more than the appraised value, especially if you’ve owned the home for a long time.
- Insurance Supplements – The most common version of this is Flood Insurance, which isn’t included in most basic homeowner’s policies. In Nebraska, Wyoming and Colorado supplemental Hail Insurance is a must. There are numerous add ons that your agent can recommend, and based on where you live these can be the difference between being able to repair your home or paying out of pocket.
- Scheduling Luxury Goods – Your homeowner’s insurance covers the things in the home, but only up to your coverage limit. If you have expensive, rare, or special goods it may be a good idea to have them listed individually on your policy. This is often true for jewelry, furs, firearms, and other big-ticket items. It’s a question for your agent for sure.
The average price of a used auto in the US is $25,000, and most people spend less than half that on their first car. While that’s still a big expense to risk by taking out a cut-rate policy, it’s nothing compared to the average cost of losing a home.
Avoiding Scammers
In disaster-prone areas, it’s not uncommon for a low-priced insurer to come along and offer too-good-to-be-true rates, only to find a way out of a claim at the last minute if they don’t outright cancel coverage – as has been seen in Florida and California. These fly-by-night insurers drive trusted companies out of the marketplace, until the only choices are either unreliable or prohibitively pricey.
When you work with agents who have roots in your communities, you can feel secure that they’re invested in everyone’s security, in a way that budget companies just aren’t.
Building a Relationship
The best part of buying from an independent agency is – hands down – our people. Our agents and service reps KNOW their customers. We live in their communities, and we have their backs. It’s easy to be popular when trying to make a sale, but at Plummer Insurance we have your back when things go wrong, and can help you review, renew, and when you have to file a claim
Our agents will work with you to find the best policy for your home, your region, and your situation. Oftentimes, it WILL be the cheapest option, but we believe success comes from repeat business. If it isn’t the cheapest option today, you can bet your agent has your long-term best interest at heart.
Oh and the best part? If you decide you want to change your policy, your independent agent can shop multiple insurers with you, so you don’t have to start all over from scratch. Buying your insurance through an independent agent, like the ones at Plummer Insurance, can not only help protect the home you live in, but hopefully let you sleep a little easier in it.
Conclusion
Chasing a cut-rate budget insurer can save you money short term, but if anything ever goes wrong having an agent to call is priceless. No one loves the idea of paying more for insurance, but with something as precious as the place where your family sleeps it’s more than worth it to be sure you get it right. Our Agents can find the best plan for you; and it still might be cheaper than you think.
